高錚雅 趙康麗

Abstract：The present study investigated the effect of Management Salary on the Internal Control Information on Disclosure.An empirical approach was adopted，which used the sample of 13，971 Chinese public firm-years from 2008 to 2016 to examine how management salary impact on the internal control information on disclosure.The survey revealed that there was a significant positive correlation between the management compensation and the quality of the internal control information on disclosure.This finding seems to support the viewpoint that an appropriate management monetary compensation has a positive effect on the improvement of the quality of internal control information disclosure.

Key words：management salary；internal control；information on disclosure

I Introduction

In the capital market，information is one of the most important links between enterprises and investors，and also an important basis for investors to choose valuable investment objects.Now，the information released by listed companies around the world can be roughly divided into two categories：one is financial information，including the companys financial situation，operating results and cash flow.The other category is non-financial information including internal control and other corporate governance information.

In the existing research on information quality financial information as the research object takes a large proportion .By contrast，the internal control information has not received enough attention from the academic community.Actually internal control information and financial information both influence the formulation of investment strategies when investors choose investment companies.

Therefore，the author intends to study the relationship between executive compensation and the quality of internal control information disclosure.

II Literature Review

Prior to the Sarbanes-Oxley Act，internal information was not mandatory，but many companies still voluntarily disclosed it.It is because internal control information is a signal of high quality of a companys internal control and through it this signal could be transmitted to external users.It can also distinguish itself from those companies with low quality of internal control （Bronson，Joesph and Carcello，2006）.

Hong feng，Dai Wentao and zhang Ran，2014）.From the above，it seems that the economic characteristics and internal governance of the company are two of the factors influencing the disclosure of internal control information （Che Xiangwu and Peng zhengyin，2016）.